News: LTR Billionaire Rinehart's Hancock Prospecting buys Liontown Resources shares, page-3

Gina Rinehart’s Hancock Prospecting has confirmed it is the buyer of a significant stake in takeover target Liontown Resources, giving Australia’s richest person potentially a big say on the company’s future.

Hancock late Monday revealed it had become a substantial shareholder in the WA lithium play, with a trading blitz last Thursday taking its holding from 4.9 per cent to 7.72 per cent.

The intervention comes at a critical time for US battery chemicals giant Albemarle, which will soon start running the ruler over Liontown’s books after agreeing terms that could lead to a $6.6 billion takeover.

The West Australian last week reported Mrs Rinehart was understood to be responsible for the Liontown share raid, which puts her among the company’s largest shareholders led by chairman Tim Goyder and his 15 per cent holding.

Hancock in a statement said the shares provided it with a “strategic stake”, “giving Liontown the opportunity to leverage” its expertise to support the development and operations of the company’s massive Kathleen Valley lithium project near Leinster.

Liontown is gearing up for first production of lithium concentrate from the mine in mid-2024.

“Hancock can contribute to Liontown’s future direction alongside other Liontown shareholders, including in relation to potential investment opportunities for downstream value add in West Australia. In the future, Hancock may also seek a position on Liontown’s board,” the company said in a statement.

Large block trades completed through Perth stockbroker Euroz Hartleys, which has been used previously by Hancock, raised eyebrows on Thursday and sent the stock soaring 9 per cent.

Even with an 8 per cent holding, Hancock wields considerable influence over Liontown’s future given traditionally about 40 per cent of shareholders turn up to vote in such takeover meetings.